IIA IIA-CIA-Part1 Practice Exams
Last updated on Apr 01,2025- Exam Code: IIA-CIA-Part1
- Exam Name: CIA Exam Part One: Essentials of Internal Auditing
- Certification Provider: IIA
- Latest update: Apr 01,2025
An organization’s fraud policies and procedures dictate that the internal audit activity does not have primary responsibility for conducting fraud investigations and should, in fact, refrain from involvement in investigations.
Which of the following activities would be considered acceptable for internal auditors to perform of this organization?
- A . Evaluate the effectiveness of fraud investigations
- B . Oversee and monitor senior management s approach to manage fraud risks
- C . Set the tone for fraud risk management within an organization
- D . Evaluate whether the financial statements are free of material misstatement due to fraud
The internal auditor obtained large volumes of transaction history data for accounts on which he suspected that some fraudulent transactions occurred.
Which of the following actions best demonstrates due professional care by the internal auditor?
- A . The internal auditor carefully scrutinized the data by manually reviewing each transaction to ensure that all irregularities were identified.
- B . The internal auditor employed the use of data analytics tools to sort, analyze, and detect anomalies in the data
- C . The internal auditor started the data analysis process by selecting a random sample of transactions on which to perform further tests.
- D . The internal auditor requested that the branch supervisor assist in identifying fraudulent transactions, as he was most familiar with the accounts being audited.
According to IIA guidance, which of the following is the most accurate statement regarding the internal audit charter?
- A . The IIA’s Code of Ethics must exist outside of the charter to maintain independence.
- B . The charter must be approved by both senior management and the board.
- C . The nature of consulting services does not need to be defined in the internal audit charter.
- D . The charter provides a framework for performing a broad range of value-added audit services.
Which of the following statements is true regarding the quality assurance and improvement program (QAIP)?
- A . Reporting on the QAIP to the board should occur at least once every five years
- B . The responsibility for the selection of an external assessor rests with the board
- C . The qualifications of the assessors must be communicated to the board
- D . The reporting of outcomes of the QAIP can be delegated to senior audit staff
A new company’s risk management function is developing its cybersecurity risk management program.
Which of the following actions should be the first priority when developing the program?
- A . Start building a cybersecurity culture and set the desired behavior using a bottom-up approach
- B . Determine the cybersecurity framework that will establish and report on the effectiveness of the program
- C . Define the cybersecurity risk appetite and perform a cost-benefit analysis of the program
- D . Raise cybersecurity awareness across various departments outside of the IT department
Which of the following would best preserve the organizational independence of the internal audit activity?
- A . The internal audit charter is approved by the chief audit executive (CAE).
- B . The CAE reports functionally to the CEO.
- C . The CAE’s internal audit plan is endorsed by the board.
- D . The chief financial officer determines the appointment of the CAE.
With regard to the internal audit activity’s quality assurance and improvement program, which of the following must be reported to the board?
- A . A statement of independence of the organization’s internal auditors.
- B . Meeting minutes with the assessment team, if key risks were identified and discussed.
- C . Frequency of the quality assessments being performed.
- D . Summary of previous internal assessments undertaken.
Which of the following indicates that internal audit independence may be compromised?
- A . The internal auditor maintains a close personal relationship with operational management.
- B . Material observations were intentionally left out of the audit report.
- C . Internal auditors assigned to the audit engagement did not have the knowledge, skills, and competencies needed to perform their responsibilities.
- D . An internal auditor failed to apply professional skepticism while performing audit tests in an area overseen by an experienced, reputable manager
Internal controls belong to which risk response category?
- A . Reduction.
- B . Avoidance.
- C . Sharing.
- D . Acceptance.
What is the ultimate goal of establishing a robust risk management framework in an organization?
- A . To support the organization’s risk culture, involving employees at all levels.
- B . To ensure that the organization attains a better financial position.
- C . To assist the organization in identifying and mitigating key risks.
- D . To facilitate the organization’s achievement of business goals and objectives.